Fitch cut Hungary’s current rating outlook from stable to negative
This afternoon, the Fitch credit rating agency announced that they cut Hungary's current rating outlook to negative from stable. However, they left the foreign currency rating unchanged at BBB.
According to the agency: “the negative outlook reflects the continued deterioration in Hungarian and European economic prospects, which combined with on-going pressure on Hungary's balance of payments and currency, increase the risk that Hungary's external and public debt profile will worsen by more than anticipated when its sovereign ratings were downgraded last November. Contrary to our expectations at the time, the IMF-led support package has not yet cemented macroeconomic and financial stability."
Market reaction: the forint has slightly weakened.
